The complexes trans-[PdEt(SR)(PMe,),] (R = Ph, 1; or C,H,Me-p, 2) and trans-[PdMe(SPh)(PMe,),]3 have been prepared by reactions of trans-[PdEt,(PMe,),] or trans-[PdMe,(PMe,),]with allyl aryl sulphides. Complex 1 reacts with various organic halides such as allyl chloride, benzyl bromide and methyl iodide to give allyl phenyl sulphide, benzyl phenyl sulphide and methyl phenyl sulphide, respectively; trans-[PdEt(X)(PMe,),] (X = CI, 4; Br, 5; or I, 6) were isolated from the reaction mixtures. The complex trans-[ PdEt(0Ph) ( PMe3)*( HOPh)] also reacts with allyl chloride to give allyl phenyl ether together with complex 4. The structure of complex 5 has been determined by X-ray crystallography: orthorhombic, space group Pbca with a = 12.306(3), b = 20.078(5), c = 11.753(2) A, Z = 8, R = 0.036 and R' = 0.042. It has a square-planar co-ordination around the palladium centre. The reaction of allyl chloride with complex 1 in toluene obeys first-order kinetics in the concentrations of both allyl chloride and 1.